Administrative Code

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Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
Chapter 80. Rules and Regulations for Section 8 Moderate Rehabilitation and Project-Based Certificate Assistance Programs
1/21/2020

13VAC10-80-110. Requirements Following Rehabilitation and Construction.

Subsequent to completion of the required improvements or new construction (as applicable) for any rental housing unit, the authority and its administrative agent shall perform their respective administrative functions and responsibilities with respect to the section 8 subsidy and HAP contract for such unit as set forth in the authority's rules and regulations for section 8 existing certificate and voucher housing assistance payments program. Following initial leasing of the assisted unit and during the entire period of the HAP contract, the owner must fill all vacancies with section 8 eligible families referred by the authority or its administrative agent, and where required by the authority, the owner shall develop and utilize tenant selection procedures and standards acceptable to the authority. The owner also must maintain the unit in its rehabilitated or newly constructed condition, as applicable, less normal wear and tear, and such maintenance of the unit will be monitored through annual inspections. The owner may not terminate a tenant lease except for tenant failure to comply with the lease or obligations under state law.

Annually, the authority will process requests by the owner for annual rent adjustments in accordance with the HAP contract. Special rent adjustments may also be approved by the authority and HUD in certain circumstances authorized by the HAP contract. The owner is also eligible to receive payments for vacancy losses, tenant damages and unpaid rent.

In the case of the moderate rehabilitation program, the maximum annual return or profit which the owner may receive from the rental of the assisted unit(s) shall not exceed 8.0% of the owner's equity as determined in accordance with HUD's requirements.

The owner must comply with all terms and conditions of the HAP contract and with the section 8 rules and regulations. Any successive owner shall be subject to the terms and conditions of the HAP contract. The authority shall have the right to terminate the HAP contract in accordance with its terms in the event of noncompliance by the owner with its provisions.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0007 § 11, eff. July 1, 1989; amended, Volume 11, Issue 17, eff. May 1, 1995.

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